KMG EP BoD Results

PRESS RELEASE

KMG EP held a meeting of the Board of Directors

Astana, March 19, 2014. Yesterday the Board of Directors of JSC KazMunaiGas Exploration Production ("KMG EP" or the "Company") met to approve the meeting agenda and set a date for the Shareholders Annual General Meeting ("AGM") for 13 May 2014.

The AGM agenda: approve annual consolidated financial statements and the Company's 2013 Annual Report, agree dividend regarding 2013 earnings per ordinary and preferred shares of KMG EP, evaluate the Board of Director's performance in 2013 and other questions.

The Board of Directors has recommended a dividend for the 2013 earnings per ordinary and preferred share of KMG EP of 1,976 Tenge which is equivalent to about 135 billion Tenge [1] (approximately US$730 million [2[). This will be voted upon at the AGM.

If approved, the payment of the 2013 annual dividend will be made starting 24 June 2014 to shareholders of record as of 23 May 2014.

Independent directors suggested payment of a substantial special dividend. This proposal was deferred by the Board of Directors for later consideration.

The Board of Directors adopted budget adjustment taking into account the increase in export and domestic tariffs of JSC "KazTransOil" from January 1, 2014.

The Board of Directors also agreed to implement a Unified System of Wages (USoW) of employees working in the upstream oil and gas division from 1 April 2014 onwards. This ruling leads to employee benefits increase by 21 billion Tenge (US$113 million2) in 2014 budget including an increase of 10% of wages in connection with the devaluation of the Tenge in February 2014.

USoW will be implemented throughout the NC KazMunaiGas Group. The USoW will provide unified tariff rates for workers within their monthly payroll. This is a new payroll system which considers the difference in complexity of work within the same occupation for all employees.

Notes to editors

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2013 was 12.4mt (an average of 251kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The Company's total consolidated volume of proved and probable reserves including shares in the associates, as at the end of 2012 was 204 mt (1.5bn bbl), out of which 148 mt (1.1bn bbl) relates to Ozenmunaigas and Embamunaigas. The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. The International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BBB-" corporate credit rating in May 2013.

For further details please contact us at:

«KMG EP». Investor Relations (+7 7172 97 5433)Asel Kaliyevae-mail: [email protected]

«KMG EP». Public Relations (+7 7172 97 7915)Zhuldyz Dzhumadilovae-mail: [email protected]

Brunswick Group (+44 207 404 5959)Andrew Mitchelle-mail: [email protected]

Forward-looking statements

This document includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology including, but not limited to, the terms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the Company's intentions, beliefs and statements of current expectations concerning, amongst other things, the Company's results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company's operations, financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.